A Rapidly Rising Urban Sports Beverage Brand

FBIF has learned that in August 2022, a rising urban sports beverage brand secured nearly ¥10 million in angel funding. Less than a year later, despite a challenging market environment, the company has consistently ranked among the top-selling brands across major e-commerce platforms and successfully completed a new funding round against market trends.

That brand is ELECTRO X.

Founded in 2021, ELECTRO X is a sports beverage brand designed for urban athletes, committed to offering health-conscious and sustainable products for active lifestyles. From online stores to offline fitness venues, marathons to cycling, rugby to CrossFit, ELECTRO X is expanding its reach across diverse sports communities.

Its performance has been remarkable:
✔ Monthly sales nearing ¥10 million
✔ 400% year-over-year growth

This new round of financing, worth tens of millions of yuan, was led by EverYi Capital, with Dongjin Foods as a co-investor.

ELECTRO X Products: pH8.8 Natural Alkaline Water, and Slim & Plus Series Electrolyte Drinks

ELECTRO X Products: Alkaline Water & Electrolyte Beverages

The brand’s core product line includes:

💧 ELECTRO X pH8.8 Natural Alkaline Water
💪 ELECTRO X Slim & Plus Electrolyte Drinks

In a crowded sports drink market, what has fueled ELECTRO X’s rapid rise? Where do the opportunities for innovation lie?

Authenticity in Sports, Precision in Product Development

Like many entrepreneurs, ELECTRO X founder Li Yu is no stranger to startups.

Before launching the brand, Li Yu founded several modern Chinese restaurants in New York, which were featured in The New York Times, Eater, and other major media outlets. His experience in food and beverage innovation gave him sharp market insights.

The Rise of New Sports Lifestyles

Over the past decade, China’s fitness culture has evolved, moving beyond traditional gym workouts to embrace a wide variety of sports and fitness activities. From trail running to indoor yoga, high-intensity training to recreational sports, consumers are seeking richer fitness experiences that also enhance their quality of life.

As this urban sports culture grows, so does the demand for sports-specific hydration solutions. However, the domestic market lacked products tailored to specific exercise needs, and brands that truly embodied a sports lifestyle were nearly nonexistent.

Recognizing this market gap, Li Yu decided to create a hydration solution specifically designed for sports enthusiasts—and thus, ELECTRO X was born.

A Brand Built by Athletes, for Athletes

ELECTRO X’s founding team is deeply embedded in sports culture—many early team members are dedicated athletes. Their first-hand experience with the needs of active individuals has played a crucial role in shaping the brand.

🔹 Urban Challenger Project (U.C.P.) – ELECTRO X’s Own Sports Community

“To measure ELECTRO X’s market potential, we focus on the penetration rate among China’s fitness population, particularly those who are willing to spend on fitness long-term.”

• In 2022, China’s fitness penetration rate was 5.1%, up from 3.5% in 2017.
• Every 1% increase in penetration represents millions of new active consumers.
• If 5% of China’s fitness consumers spend just ¥100 per month on hydration, the total addressable market exceeds ¥80 billion.

Rather than just analyzing category size, ELECTRO X assesses how sports culture drives product demand—a future-forward approach that sets it apart.

💡 Brand Philosophy: “Quality-Driven, Precision, and Long-Term Thinking”

“Every ELECTRO X product is designed for daily consumption—something athletes can drink at least twice a day, 365 days a year, with zero negative impact on health.”

The Core of ELECTRO X Product Development

1️⃣ Hydration + Electrolytes = Essential Nutrition

• Water and electrolytes are the most critical nutrients for active individuals.
• ELECTRO X products focus on replenishment and performance recovery.

2️⃣ Taste & Sensory Experience

• Flavor is carefully crafted to offer a premium taste without excessive marketing gimmicks.
• The packaging is minimalistic, featuring only essential branding elements.

“We avoid unnecessary design flourishes. The goal is to keep the experience pure, intentional, and authentic.”

Competing in a Crowded Market: Precision Positioning & Multi-Channel Expansion

Since its launch in 2021, ELECTRO X has rapidly grown:

✔ Monthly revenue nearing ¥10 million
✔ 400% YoY growth
✔ Ranked among the top 5 water & sports drink brands on Tmall & Douyin
✔ Over 10,000 offline retail locations

Standing Out in a Competitive Sports Beverage Market

ELECTRO X faces competition from global powerhouses:

• Gatorade (U.S.): Tightly integrated with sports events
• Pocari Sweat (Japan): Marketed as a cooling sports drink
• Screamin’ (China, launched in 2003): A traditional domestic player
• Alienergy (China): A fast-growing new brand

A Highly Targeted Consumer Base

Rather than competing in traditional sports categories, ELECTRO X focuses on emerging sports subcultures:

🚴 Cycling
🧘 Yoga & Pilates
🏃 Outdoor & Trail Running
🥏 Ultimate Frisbee

These new sports communities are highly engaged, value product quality, and have strong purchasing power—making them an ideal target market for a premium sports drink.

ELECTRO X Product Line: Innovation & Market Fit

Core Product Offerings

1️⃣ pH8.8 Natural Alkaline Water
• Rich in natural sodium bicarbonate (NaHCO₃) and metasilicic acid (H₂SiO₃)
• Naturally alkaline (pH 8.8+)
• Ideal for athletes, individuals with acid reflux, and pregnant women

2️⃣ PLUS Electrolyte Drink
• Contains tea polyphenols, glucose, and essential vitamins
• No artificial flavors
• Features white grape juice from Spain & tea extract from Guangxi, China
• Official hydration sponsor for the 2022 Shenzhen Marathon & 2023 Yangtze River Delta Cycling Tour

3️⃣ SLIM Electrolyte Drink
• Blended with mixed berries (raspberry, blueberry, strawberry from California, U.S.)
• No artificial flavors
• Designed as a healthy, fruit-based alternative to traditional juice drinks

Strategic Growth: Retail, Partnerships & Sports Sponsorships

ELECTRO X is scaling through premium sports retail and high-end fitness centers:

🏋️‍♂️ Luxury Gyms: Pure Fitness, Space Cycle, Z&B, BFC Fitness
🏟️ Stadiums: Beijing Bird’s Nest, Shanghai Hongkou Sports Center
🏨 Hotels & Theaters: Conrad Guangzhou, InterContinental Zhuhai, Wanda Cinemas
🛒 High-End Supermarkets: Hema, Ole

🚀 Official Sports Sponsorships & Brand Partnerships
• 100+ collaborations with Lululemon, On Running, and Nike
• Official beverage sponsor for rowing, marathon, and cycling races
• Professional team sponsorships: Attack-Exar Cycling Team & CrossFit Team Spired

Looking Ahead: Expansion & Long-Term Vision

🎯 Goal: Become a National Sports Beverage Leader
• Expand offline distribution to 100,000 retail locations
• Reach 30% of China’s active fitness consumers
• Maintain 80%+ annual growth over the next five years

💡 Future Product Innovations
• Expand into solid-form electrolyte powders
• Continue developing new hydration solutions for different sports needs

Conclusion

ELECTRO X is redefining the sports beverage industry in China, blending authentic sports culture with high-quality hydration solutions. As China’s fitness movement accelerates, the brand is well-positioned to lead the next wave of functional sports drinks. 🚀

About the investors

EverYi Capital is a private equity investment fund specializing in the consumer sector. Its past investments include well-known domestic and international consumer brands such as Genki Forest, Yellow Swan, CHOCDAY, Kanpai Group, Mistine, 88Rising, Frank Body, and Nothing.

Dongjin Group has been deeply involved in the food industry for 30 years and previously successfully created the “Totole” (太太乐） chicken essence brand.

Hong Kong Linhua Sports is the controlling shareholder of the sports stretching brand Dr.Stretch and has invested in multiple sports-related consumer companies, including CrossFit in the U.S. and Nobitel in Japan.

“Chinese young consumers are increasingly focusing on their health. I believe the sports and functional beverage market in China has long-term and significant growth potential. ELECTRO X, through its continuous efforts in sports channels and events, will help consumers build a healthier body and lifestyle,” said Greg Cattin, Senior Advisor at EverYi Capital.

Having spent over a decade at Nestlé as the former head of Ready-to-Drink Coffee, and having led the introduction of Danone’s Evian mineral water into China, Greg Cattin will now join ELECTRO X as a brand advisor following this round of financing. Leveraging his extensive industry experience and resources, he will support the brand’s development.

It is evident that ELECTRO X’s investors bring a diverse range of expertise, with deep investment experience and industry knowledge in the FMCG and sports sectors. Their insights and extensive commercial networks could provide the company and brand with forward-looking industry experience and valuable business resources for future growth.

Following this round of financing, ELECTRO X will remain dedicated to its original brand vision, striving to create a beverage brand with a true sports culture identity.

Original: https://mp.weixin.qq.com/s/RdVWjxAOoCkwPaxkhg1WSw (translated by ChatGPT)

EverYi Capital | July 19, 2023